Question

The present value of scooter is $15360.if it's value depreciates 12.5wvery year, find its value after 3years

Answer 1

Correct Question

The present value of scooter is $15360. If it's value depreciates 12.5 every year. Find its value after 3 years.

Answer

Given :

Present value of scooter : $15360

Rate of depreciation : 12.5%

Time : 3 years

To find :

The value of the scooter after 3 years

Solution :

We can find the value of the scooter after 3 years by a formula.

Value of the scooter (after 3 years) :

$\sf \dashrightarrow P \bigg( 1 - \dfrac{Rate}{100} \bigg)^{Time}$

$\sf \dashrightarrow 15360 \bigg( 1 - \dfrac{12.5}{100} \bigg)^{3}$

$\sf \dashrightarrow 15360 \bigg( \dfrac{100 - 12.5}{100} \bigg)^{3}$

$\sf \dashrightarrow 15460 \bigg( \dfrac{87.5}{100} \bigg)^{3}$

$\sf \dashrightarrow 15460 \bigg( \dfrac{17.5}{20} \bigg)^{3}$

$\sf \dashrightarrow 15460 \bigg( \dfrac{17.5^3}{20^3}\bigg)$

$\sf \dashrightarrow 15460 \bigg( \dfrac{5359.375}{8000}\bigg)$

$\sf \dashrightarrow 773 \bigg( \dfrac{5359.375}{400}\bigg)$

$\sf \dashrightarrow \dfrac{773 \times 5359.375}{400}$

$\sf \dashrightarrow \dfrac{4142796.875}{400}$

$\sf \dashrightarrow \cancel \dfrac{4142796.875}{400} = 10356.99$

Hence, the value of the scooter after 3 years is $10356.99.